Hertz Global Holdings, Inc. (HTZ) experienced a sharp decline on Monday, with its stock plummeting 13.47% during the trading session. This significant drop comes on the heels of an impressive rally last week, which saw the rental-car company's shares more than double in value over just two trading sessions.

The dramatic downturn can be largely attributed to investors taking profits after the recent surge. Last week's rally was fueled by news that hedge-fund manager Bill Ackman's firm had disclosed a significant stake in Hertz, sparking enthusiasm among investors. However, as is often the case following such rapid ascents, many shareholders opted to cash in on their gains, leading to the current sell-off.

The correction began in pre-market trading, with early indicators showing a decline between 5.5% to 10%. This downward pressure persisted and intensified during the regular trading hours, resulting in the 13.47% drop. Despite the sharp decline, some market observers note that this pullback is not uncommon following such a meteoric rise and may represent a natural market correction rather than a fundamental change in the company's prospects.